SH. AYUSH BIYANI ,GURGAON V. ITO, WARD-1(3), GURGAON, GURGAON

ITA 4113/DEL/2025

AI Insights

The case involves Shri Ayush Biyani, who appealed against the order of the National Faceless Appeal Centre (NFAC), which confirmed the denial of a deduction under section 80C of the Income-tax Act, 1961, for the assessment year 2016-17. The deduction claimed was \\u20b91,50,000, which was inadvertently omitted in the original return of income filed. The NFAC rejected the claim on the grounds that the omission was deliberate. However, the ITAT overturned this decision, citing that the provisions of section 80AC, which restrict deductions, were not applicable as they were introduced only from April 1, 2018, and the return was filed in compliance with the requirements of the Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772521 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2016-2017
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Assessee Lawyers: P.C. PARWAL; WAY OF
• Keywords: Reassessment proceedings
• Section: 143(3); 80C

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No. 4113/Del/2025 (Assessment Year: 2016-17) Shri Ayush Biyani, Kalani & Co LLP, Chartered Accountants, 5th Floor, Milestone Building, Gandhinagar Turn, Tonk Road, Jaipur Vs. ITO, Ward-1(3), Gurgaon PAN: ALRPB1245J Assessee by : Shri P. C. Parwal, CA Revenue by: Shri Manoj Kumar, Sr. DR Date of Hearing 13/08/2025 Date of pronouncement 27/08/2025 O R D E R 1. The appeal in ITA No.4113/Del/2025 for AY 2016-17 arises out of the order of the ld. National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. NFAC’, in short] in Appeal No. ITBA/NFAC/S/250/2025- 26/1075987781(1) dated 01.05.2025 against the order of assessment passed u/s 143(3) r.w.s. 147 of the Income-tax Act, 1961 dated 12.03.2024 (hereinafter referred to as ‘the Act’) by NFAC, Delhi (hereinafter referred to as ‘ld. AO’). 2. The only short issue to be decided in the appeal is as to whether the ld NFAC was justified in confirming the denial of deduction u/s 80C of the Act of ₹1,50,000/- in the facts and circumstances of the instant case. 3. I have heard the rival submissions and perused the material available on record. The assessee is an individual. Proceedings u/s 147 of the Act stood initiated for assessment year 2016–17 vide order passed u/s 148A(b) of the Act on 26.03.2023. No compliance was made by the assessee and order u/s 148A(d) of the Act was passed for initiation of proceedings u/s 147 of the Act. Later the Printed from counselvise.com ITA No. 4113/Del/2025 Shri Ayush Biyani Page | 2 reassessment proceedings were framed u/s 147 r.w.s. 144B of the Act on 12.03.2024. The return of income of ₹13,18,200/- was filed by the assessee. In the said return, the assessee inadvertently omitted the claim of deduction u/s 80C of the Act in the sum of ₹1,50,000/-. Accordingly, the assessee by way of additional ground before the ld NFAC made this claim which stood rejected by the ld NFAC by holding non- claiming of deduction u/s 80C of the Act was deliberate and cannot said to be ignorance of the assessee. Accordingly, the reliance placed by the assessee on CBDT Circular No. 14(XL-35) dated 11.04.1955 was held to be not applicable. 4. I find that provisions of Section 80AC of the Act are very clear wherein deductions clamed under the head “\"C.-Deductions in respect of certain incomes\" were introduced only from 01.04.2018 in the Act. Prior to that, there was no bar for claiming deduction u/s 80C of the Act. What is required is only a return to be furnished by the assessee. This has been duly complied and hence assessee is entitled for deduction u/s 80C of the Act in the sum of ₹1,50,000/-. The ld AO is directed accordingly. 5. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 27/08/2025. -Sd/- (M. BALAGANESH) ACCOUNTANT MEMBER Dated: 27/08/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT Printed from counselvise.com ITA No. 4113/Del/2025 Shri Ayush Biyani Page | 3 ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "